Union Bank Offers Visa Steel's Debt At Lower Price In Sale Bid

Union Bank of India has made the decision to sell off Visa Steel's debt, amounting to Rs 410 crore, at a reduced price after failing to attract any bids in the previous quarter. The bank has set the reserve price for the debt at Rs 143 crore, which is lower than the price set in the previous quarter, which was Rs 160 crore. Alongside Visa Steel's debt, debts from six other companies with a total outstanding amount of Rs 300 crore, including exposures to Asian Colour Coated Ispat Limited (ACCIL) and SDB Developers, are also up for sale.

In an effort to adjust its price expectations, Union Bank aims to recover 34 per cent of the debt instead of the earlier target of 40 per cent. Interested bidders must submit expressions of interest by 11 July, and the Swiss auction will take place on 18 July, exclusively on a cash basis. The delay in resolving the debt issue has compelled the bank to proceed with the sale. It's worth noting that Visa Steel was admitted to the National Company Law Tribunal (NCLT) in November 2022 based on an application filed by Oriental Bank of Commerce.